A disadvantage of licensing is
A) it's very costly for the licensor.
B) the licensee can decide to end the contract at a moment's notice.
C) your company's image is never permitted to be associated with the product, even though you are the developer.
D) the licensee may decide to use the expertise you have developed, break the agreement, and begin producing the product on his/her own.

Question

Quizplus · Accepted Answer

Licensing can lead to situations where the licensee, having gained knowledge or expertise from the licensor, might terminate the agreement and start producing the product independently, potentially becoming a competitor. This is a risk associated with sharing proprietary information or processes through licensing agreements.

A Disadvantage of Licensing Is